Online video market in China – additional information
Over the past decade, the number of internet users in China has increased almost fivefold. By the end of 2014, about 650 million Chinese had used the Internet. While the absolute number of users seems high, there is yet a massive potential of internet users to be unlocked, as the internet penetration in Chinahad only reached 48 percent. Soaring user numbers have had an immediate impact on the development of online video platforms. Whereas a mere 160 million Chinese had watched videos online in December 2007, this number had nearly tripled in 2014, reaching about 433 million users. That year, online video user penetration had ranged at 66.7 percent. As of 2012, the overall market size of China’s online video industry had amounted to 9.3 billion and is projected to reach around 33 billion yuan in 2016. Advertising accounted for more than 70 percent of the total online video revenue growth in 2014.
The internet has become the preferred platform for watching video content, especially for younger generations. According to the CNNIC, more than half of online video users in 2013 had been in their teens and 20s. As of 2011, Chinese users in the age-group of 19 to 24 had been more likely to watch videos online while other age-groups still preferred to watch traditional TV. Meanwhile, people with higher education levels had been more willing to watch online videos. In 2011, 77.5 percent of Chinese with a Bachelor degree or above had been online video users while only one tenth of people who had finished primary school watched videos online.